The present disclosure relates to the field of for-hire vehicles such as taxis, limousines, shuttles, buses or any other vehicle that provides shared transportation or transports one or more passengers between locations of the passengers' choice.
A for-hire vehicle (FHV) generally charges fares for transporting a passenger from one location to another. Some FHVs, such as taxicabs, operate with a meter. The primary purpose of a meter is to calculate fares for the passengers that hire the FHV. For example, the meter may charge an initial fee to start a trip and then may calculate a fee per every one-eighth mile traveled. The fares are generally displayed in a manner so that the passenger may view the calculation of the fare during the trip. A meter serves as a way to fairly and accurately calculate the total amount the passenger will be charged for the trip in the FHV. Meter-operated FHVs may differ from non-meter operated FHVs because in the former, the passenger's fare is calculated as the trip progresses while in the latter, the fare may be negotiated before the passenger is picked up.
The operation and maintenance of FHVs and meters is highly regulated. The entity charged with developing and enforcing the regulations (“regulatory agency”) for a jurisdiction generally imposes several requirements on operators of FHVs. For example, the regulatory agency may require the operator to obtain a certificate of public convenience and necessity (“CPCN”), which certifies that the operator is fit to operate a FHV or fleet of FHVs and that the vehicle or vehicles used to transport members of the public comply with certain minimum standards. As used herein, CPCN (or “certificate”) is meant to refer to the FHV owner's or operator's general certificate of license to operate as granted by the regulatory agency, jurisdiction, or governmental body, however denominated. A regulatory agency may also enforce geographic or time restrictions on the CPCN of a FHV operator. The geographic restrictions may restrict operation of a FHV to a limited area within the regulatory agency's jurisdiction of control, such as “west of the interstate” or “within the airport region.” The time restrictions may restrict operation of a FHV to a particular time frame such as nights or weekends. Regulatory agencies may also issue permits or licenses to drivers of FHVs authorizing them to drive a FHV within the regulatory agency's jurisdiction for a period of time such as a year. In addition to certificates of public convenience and necessity and permits (or FHV drivers' licenses), regulatory agencies may also issue medallions to meter-operated FHVs. Medallions are generally unique within a single jurisdiction and may be identified by a serial number, or medallion number and are associated with only a single FHV at any one time. Some medallions authorize unrestricted use of a FHV within the jurisdiction, while other medallions only authorize use during certain times or in certain geographic regions. For example, one medallion may permit twenty-four hour a day, seven day a week, operation, while another may only permit operation during certain hours on the weekends. Currently, in order for the FHV to be operating within regulations, its associated medallion must generally be displayed so that enforcement officers and/or passengers may view the medallion. Regulatory agencies may also impose other restrictions on the operation of FHVs that apply to all operators and are not specifically associated with a CPCN, medallion or permit. These general regulations may apply to FHVs of a certain type, such as taxicabs, and may relate to passenger safety, the environment, or other concerns within the public interest.
The combination of restrictions imposed by the regulatory agency through CPCNs, medallions, permits, and general regulations creates a set of rules that define the authorization for a FHV and driver to operate a FHV (“authorization rules”). For example, all of the medallions of an operator or driver will carry basic certificate restrictions, in addition to any restrictions placed on the specific medallions allocated to the operator, if any. For example, the regulatory agency may issue a certain number of medallions to all certificate holders in the jurisdiction that may be operated from noon to 2 AM, seven days per week. A FHV operator in the jurisdiction with a certificate restricting passenger pick-ups to a geographic area “west of the interstate,” for example, could operate the new medallion from noon to 2 AM, 7 days a week, but only for pick-ups “west of the interstate” even though the newly issued medallions do not have geographic restrictions. On the other hand, competitors with unrestricted certificates could operate the same newly issued medallions during the permitted times and pick-up passengers anywhere within the jurisdiction. In addition, only those drivers with valid permits are allowed to operate a FHV. In addition, the general regulations may impose universal restrictions. For example, FHVs may not be permitted to operate above a certain speed when carrying a passenger.
Currently, the enforcement of authorization rules is limited to visual inspection. In some jurisdictions, medallions are affixed to the exterior of the FHV and may be color coded to indicate the scope of their authorization. Driver permits must be inspected by enforcement officers by asking the driver to provide evidence of their permit. FHVs may continue to operate, even outside the scope of their authorization rules, until an enforcement officer inspects a FHV, its current operating environment (such as the FHV's location and the current time) and indicia of its authorization such as its medallion, CPCN, or the driver's permit. FHVs may (and unfortunately often do) also accept passenger fares at times or in places not permitted by their authorization rules if there is no enforcement officer present to observe the conduct which is in violation of the scope of operation granted to the FHVs by the regulatory agency. Thus, adequate enforcement of authorization rules is dependent upon human intervention; an enforcement officer would need to be available at all times to inspect the medallion, certificate, and permit of all FHVs operating within a jurisdiction in order to ensure proper compliance. Compliant meter operation is also dependent upon human intervention. As a result, effective enforcement may be expensive and cost prohibitive in many jurisdictions. The present state of regulation in many, if not most, jurisdictions, is that, enforcement may be ineffective because there are not enough enforcement officers available to adequately ensure compliance.